Dear All, *Sub.: how can i claim gratuity amount.*
I had served in a private ltd. organization in Industrial Area Chandigarh, for more than 11 years
with **zero benefits (no PF/Leave encashment/ bonus / no increment for last 3 years)**
adding to this I received an appointment letter by mail (No hard copy)
I resigned from that organization on 6th may with a notice period of 30 days (6 April to 6th may).... now I want to claim the Gratuity amount, pl. specify if I am liable to claim that benefits.
About the Company,
Registered office in Chandigarh with approx. 8-10 staff members, and having mfg. unit in Baddi with more than 40+ employees.
pl. guide accordingly ...........
the procedure of filling, days
From India, Chandigarh
I had served in a private ltd. organization in Industrial Area Chandigarh, for more than 11 years
with **zero benefits (no PF/Leave encashment/ bonus / no increment for last 3 years)**
adding to this I received an appointment letter by mail (No hard copy)
I resigned from that organization on 6th may with a notice period of 30 days (6 April to 6th may).... now I want to claim the Gratuity amount, pl. specify if I am liable to claim that benefits.
About the Company,
Registered office in Chandigarh with approx. 8-10 staff members, and having mfg. unit in Baddi with more than 40+ employees.
pl. guide accordingly ...........
the procedure of filling, days
From India, Chandigarh
Dear
Grauty is applicable to any factory,Shop and establishment,Where 10 or more or more employees employed on any day of proceeding 12 months.
Any employee (other than an apprentice) who are employed on wages and who has rendered continues services for not less then five years (In case of death or disablement continues services shall not be applicable).Since you have employed their about 11 years,So you are certainly eligible for gratuity.
You may apply in form no I of gratuity.
If your employer do not show any interest you may consult labour commissioner for same.
Thanks
S.Kumar
From India, New Delhi
6Grauty is applicable to any factory,Shop and establishment,Where 10 or more or more employees employed on any day of proceeding 12 months.
Any employee (other than an apprentice) who are employed on wages and who has rendered continues services for not less then five years (In case of death or disablement continues services shall not be applicable).Since you have employed their about 11 years,So you are certainly eligible for gratuity.
You may apply in form no I of gratuity.
If your employer do not show any interest you may consult labour commissioner for same.
Thanks
S.Kumar
From India, New Delhi
The Payment of Gratuity Act 1972 applies to-
(a) ....
(b) ,,,,,,
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, .....
Presuming that the Chandigarh Office had 10 or more employees, the Act would apply.
The employer is required to pay you gratuity, you are not required to take any action for this as per the Payment of Gratuity Act 1972. If they do not pay you, you can send a letter demanding its payment and endorse a copy thereof to the Labour Department (The Controlling authority as per PGA). It is surprising as to how the employer could successfully evade PF all along for more than 11 years.
From India, Mumbai
(a) ....
(b) ,,,,,,
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, .....
Presuming that the Chandigarh Office had 10 or more employees, the Act would apply.
The employer is required to pay you gratuity, you are not required to take any action for this as per the Payment of Gratuity Act 1972. If they do not pay you, you can send a letter demanding its payment and endorse a copy thereof to the Labour Department (The Controlling authority as per PGA). It is surprising as to how the employer could successfully evade PF all along for more than 11 years.
From India, Mumbai
First, the poster has to send a notice of claim for gratuity in the prescribed format to the employer by registered post.
Secondly, if no reply is received from the employer or claim is rejected for whatever reason or the amount of gratuity mentioned in the reply is disputable on grounds like last drawn salary, length of qualifying service etc., the poster should file his claim for gratuity with the copy of claim submitted to the employer, his acknowledgement, reply if any received etc., to the Controlling Authority for the area where he worked last.
The formats of the forms mentioned above should be as per the Central or State Gratuity Rules as applicable to the establishment.
The other grievances like non-inclusion into EPF, non-payment of bonus, leave encashment, non-sanction of increments etc., have to be dealt with separately.
Better, the poster should engage the services of an advocate.
From India, Salem
Secondly, if no reply is received from the employer or claim is rejected for whatever reason or the amount of gratuity mentioned in the reply is disputable on grounds like last drawn salary, length of qualifying service etc., the poster should file his claim for gratuity with the copy of claim submitted to the employer, his acknowledgement, reply if any received etc., to the Controlling Authority for the area where he worked last.
The formats of the forms mentioned above should be as per the Central or State Gratuity Rules as applicable to the establishment.
The other grievances like non-inclusion into EPF, non-payment of bonus, leave encashment, non-sanction of increments etc., have to be dealt with separately.
Better, the poster should engage the services of an advocate.
From India, Salem
Interesting point here.
The office where he is working has less than 10 employees (as it appears from the post above)
In that case, the employer will be free to deny gratuity to him though the company in total has more than 10 employees?
Because the section says "Establishment" not company
From India, Mumbai
The office where he is working has less than 10 employees (as it appears from the post above)
In that case, the employer will be free to deny gratuity to him though the company in total has more than 10 employees?
Because the section says "Establishment" not company
From India, Mumbai
Yes Mr Saswata same I noticed and observed.
But on the same point member has mentioned "mfg. unit in Baddi with more than 40+ employees".
It decodes the total number of the establishment is more than 10 that means the establishment is covered under the POG Act, 1972.
Bcoz the establishment is controlling the manufacturing unit (being HO/Corporate Office) and the revenue source is same, hence I assumed both are with the same name. Otherwise what is the earning source for the establishment where 8-10 people are working.
Dear Mr Pharmadesigner,
Before experts give different opinions, pls clarify some basic doubts.
1. Whether both establishments are working with same name or different name.
2. Even if they are working with different name, pls confirm whether at any point of time there were 10 or more employees are engaged in your company. If this is proved, still your establishment is also liable to pay Gratuity.
3. Whether as per the Act your establishment have paid Gratuity to any previous employee?
Hope the answer of above doubts will put major impact on the opinions.
From India, Delhi
But on the same point member has mentioned "mfg. unit in Baddi with more than 40+ employees".
It decodes the total number of the establishment is more than 10 that means the establishment is covered under the POG Act, 1972.
Bcoz the establishment is controlling the manufacturing unit (being HO/Corporate Office) and the revenue source is same, hence I assumed both are with the same name. Otherwise what is the earning source for the establishment where 8-10 people are working.
Dear Mr Pharmadesigner,
Before experts give different opinions, pls clarify some basic doubts.
1. Whether both establishments are working with same name or different name.
2. Even if they are working with different name, pls confirm whether at any point of time there were 10 or more employees are engaged in your company. If this is proved, still your establishment is also liable to pay Gratuity.
3. Whether as per the Act your establishment have paid Gratuity to any previous employee?
Hope the answer of above doubts will put major impact on the opinions.
From India, Delhi
Mr. Dangwal,
So, if the factory is in the name of XYZ ltd, and the office is also in the name of XYZ ltd, does that mean they will be counted as a single establishment?
sec 3(b) is : "Every Shop or Establishment within the meaning of any law for the time being in force, in relation to Shop & Establishment in a state, in which 10 or more persons are employed, or were employed on any day of the preceding 12 months."
This indicates that each establishment with its independent shop & establishment license needs to have 10 or more employees and not that you should add the number of employees at the factory (which is separately provided for in Sec 3(a)
Logically an employer should not be allowed to escape the liability this way, but the wording of the act seems to give the option as it does not refer to the company or the firm but to each establishment independently
From India, Mumbai
So, if the factory is in the name of XYZ ltd, and the office is also in the name of XYZ ltd, does that mean they will be counted as a single establishment?
sec 3(b) is : "Every Shop or Establishment within the meaning of any law for the time being in force, in relation to Shop & Establishment in a state, in which 10 or more persons are employed, or were employed on any day of the preceding 12 months."
This indicates that each establishment with its independent shop & establishment license needs to have 10 or more employees and not that you should add the number of employees at the factory (which is separately provided for in Sec 3(a)
Logically an employer should not be allowed to escape the liability this way, but the wording of the act seems to give the option as it does not refer to the company or the firm but to each establishment independently
From India, Mumbai
Dear Saswatabanerjee,
The term 'establishment' has not been defined under the PGA 1972 : rather it has been indicated what an establishment is by way of exhaustive illustrations u/s 3 of the Act.
We all know that a company registered under the Companies Act is a separate legal entity with an independent existence of its owners and as such it can run different forms of establishments under its own common name or in different names. What is important is whether it is an organic whole in terms of its overall administration and business operations in an integrated manner. In other words, If the company is a cluster or conglomeration of different establishments with a common accounting system or balance sheet, the no of employees employed in a particular branch or establishment is to be ignored and the total no of employees in the company as a whole to be taken into account for the purpose of the PGA,1972. Basically, a shop or establishment is defined as such with reference to the premises or place where the activities of buying, selling of commodities or rendering commercial service to the members of the general public or internal administrative functions are carried out. For example, the company XYZ Ltd is engaged in retail sales of consumer goods and has different branches in different states and warehouses where cleaning and packaging of goods are done separately, it is not necessary to look into the no of total employees of such individual units for the applicability of the PGA,1972. Therefore, my submission is that logically and legally, these branches or units of the same company are not independent of the company which owns and runs them for the purpose of the PGA,1972.
From India, Salem
The term 'establishment' has not been defined under the PGA 1972 : rather it has been indicated what an establishment is by way of exhaustive illustrations u/s 3 of the Act.
We all know that a company registered under the Companies Act is a separate legal entity with an independent existence of its owners and as such it can run different forms of establishments under its own common name or in different names. What is important is whether it is an organic whole in terms of its overall administration and business operations in an integrated manner. In other words, If the company is a cluster or conglomeration of different establishments with a common accounting system or balance sheet, the no of employees employed in a particular branch or establishment is to be ignored and the total no of employees in the company as a whole to be taken into account for the purpose of the PGA,1972. Basically, a shop or establishment is defined as such with reference to the premises or place where the activities of buying, selling of commodities or rendering commercial service to the members of the general public or internal administrative functions are carried out. For example, the company XYZ Ltd is engaged in retail sales of consumer goods and has different branches in different states and warehouses where cleaning and packaging of goods are done separately, it is not necessary to look into the no of total employees of such individual units for the applicability of the PGA,1972. Therefore, my submission is that logically and legally, these branches or units of the same company are not independent of the company which owns and runs them for the purpose of the PGA,1972.
From India, Salem
Dear Saswata,
I fully agree with Umakanthan sir.
The Legal entity of any establishment can't be treated as "Separate" merely on basis of establishing different units/offices at different places/states for different work/s.
If the legal status and other registrations of all branches/offices is operating with same name then employees of all places would be counted as single establishment employees.
Accordingly Gratuity will also equally applicable for all.
From India, Delhi
I fully agree with Umakanthan sir.
The Legal entity of any establishment can't be treated as "Separate" merely on basis of establishing different units/offices at different places/states for different work/s.
If the legal status and other registrations of all branches/offices is operating with same name then employees of all places would be counted as single establishment employees.
Accordingly Gratuity will also equally applicable for all.
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Death while in service letter for pf death claim.docx
PF Death case Composite Claim Form No 20,10D & 5IF.xls